Study on Foreign Debt Management in the Process of Convertibility of China’s Capital Account

With the deepening of China’s opening-up, the cost of control on capital account becomes larger and larger. Therefore, to further promote the convertibility of capital account has become an important and foreseeable reform in the China’s future economic and financial area. At present, in terms of control on China’s capital account, only external liabilities and credit financing are imposed rather strict control. Foreign debt, as a major form of external liabilities and credit financing, can make up for the shortage of funds for domestic construction, help learn from foreign advanced technology and management mode, promote the optimization of domestic industrial structure and bring the domestic enterprises in line with international standards. However, it can also bring unpredictable risks to a nation’s economy once it fails to pay the debts. This paper deliberates on the historical process, the content, the statistical caliber and management mode of China’s foreign debt management. Then through analyzing the quantity management, structural management, operation management data of China’s foreign debt for years, this paper sums up the problems lying in China’s current foreign debt management. Combined with experience of other countries in managing foreign debt, it also puts forward policy recommendations for foreign debt management in the process of convertibility of China’s foreign debt management.